Binance listing another Token Wrapped Bitcoin to support DeFi
August 31, 2020 6:36 pm
The world’s largest cryptocurrency exchange in terms of market capitalization, Binance is listing another token to support the growth of decentralized finance (DeFi).
According to an Aug. 31 blog post by the exchange, Binance will list Wrapped Bitcoin (WBTC), a new ERC-20 token pegged to the price of Bitcoin (BTC) and is now tradeable on Binance at 2020/08/31 8:00 AM (UTC). Demand for WBTC is increasing along with the DeFi rally.
Per an official announcement, Binance users can now start deposit WBTC as well as trade the token against Bitcoin and Ether (ETH). Wrapped Bitcoin is an Ethereum based token that represents Bitcoin, with one WBTC being equal to one BTC, started in 2019. It is a collective initiative by major DeFi players like BitGo, Ren, Dharma, Kyber Network, Compound, MakerDAO and the Set Protocol.
The token is designed to bring more liquidity into the Ethereum network with Bitcoin as well as implement it in the DeFi industry. The token allows Bitcoin holders to keep holding BTC while also using DeFi apps like Compound to borrow or lend money, As part of WBTC’s functionality in DeFi. Opposed to traditional finance, decentralized finance, or DeFi envisions a brand-new monetary system built on top public blockchains.
DeFi provides decentralized lending as its key benefit by connecting borrowers and lenders directly eliminating credit checks, and enable digital assets to be collateralized.
In 2020, The DeFi industry has been growing exponentially with the total value locked in the market hitting $9 billion on Aug. 30.
On Aug. 30, the most widely-used decentralized exchange on Ethereum, Uniswap exceeded major crypto exchange Coinbase in daily volume. As DeFi continues to see a meteoric rise, by mid-August, the demand for WBTC is also up, hitting $274 million in circulation.
Binance has been actively covering the DeFi market this year. In April, Binance issued a new DeFi token backed by the crypto asset, Ontology (ONT) and in August 2020, Binance in partnership with major industry players like Compound Finance and Kava Labs launched DeFi staking.